McDONALD’S SHOPPING CENTRE WESLEY COURT, THE PRECINCT, BLAYDON-ON-TYNE NE21 5BT

DRIVE-THRU INVESTMENT LET TO MCDONALDS FOR 23 YEARS (CERTAIN) McDONALD’S BLAYDON SHOPPING CENTRE DRIVE-THRU INVESTMENT LET TO WESLEY COURT, THE PRECINCT, BLAYDON-ON-TYNE NE21 5BT MCDONALDS FOR 23 YEARS (CERTAIN)

Newcastle-upon-Tyne

A1 Shibon Nature Reserve Reece Innovation Centre

A695 River Tyne

Morrisons Supermarket

Blaydon Shopping Centre

A695 Blaydon Railway Station

Blaydon Shopping Centre Bus Stop

Outline for indicative purposes only. McDONALD’S BLAYDON SHOPPING CENTRE DRIVE-THRU INVESTMENT LET TO WESLEY COURT, THE PRECINCT, BLAYDON-ON-TYNE NE21 5BT MCDONALDS FOR 23 YEARS (CERTAIN)

INVESTMENT CONSIDERATIONS DATAROOM

■ Long-let drive-thru investment located in Blaydon, Gateshead For access to the Allsop dataroom please use the following link: ■ Modern, purpose built drive-thru unit totalling 3,128 sq ft (290.6 sq m) https://datarooms.allsop.co.uk/register/mcdonaldsblaydon ■ Strategically located next to Blaydon Shopping Centre with immediate access to Blaydon railway and bus stations as well as the busy A695 PROPOSAL ■ Securely let to the undoubted covenant of McDonald’s Restaurants Limited (5A1) Offers sought in excess of £1,343,000 (One Million, ■ Long unexpired term of 23 years (certain) Three Hundred and Forty Three Thousand Pounds), ■ Low passing Rent of £74,758.77 per annum subject to 5 yearly rent reviews which reflects an attractive Net Initial Yield of 5.25%, ■ McDonalds have recently extended their lease showing their commitment to the unit assuming purchasers costs of 6.02% McDONALD’S BLAYDON SHOPPING CENTRE DRIVE-THRU INVESTMENT LET TO WESLEY COURT, THE PRECINCT, BLAYDON-ON-TYNE NE21 5BT MCDONALDS FOR 23 YEARS (CERTAIN)

A696

NEWCASTLE A69 South UPON TYNE Shields A69 A1300 A1 BLAYDON A194 Gateshead A184

A1018 A19

A194(M) A1 A692 Birtley A694 Washington A690 A693

Chester-Le-Street Houghton A1(M) le Spring A19 A167

A691 Murton

A68 Durham

A19

Hartlepool

RD BOULEVA KINGFISHER A 60 85 LOCATION Blaydon is located in the North East of in the Metropolitan Borough of Gateshead. The town is approximately 8 km (5 miles) west of , 26 km (16 miles)

north of Durham and 26 km (16 miles) north-west of Sunderland. ST E L LA The town benefits from good road communications with the ST A1 Western Bypass approximately 1.6 km (1 mile) to the east, R EE connecting with Junction 34 of the A1(M) Motorway to the south- T east. The A1 also connects with the A69 to the north, with the A1 A695 and B6317 both leading into Blaydon. In addition, the town is connected to the national railway network RIVER TYNE with a fastest journey time to London Kings Cross of 3 hours 32 minutes. Direct rail connections are also provided to Newcastle BLAYDON HAUGHS INDUSTRIAL ESTATE of approximately 15 minutes. Newcastle International Airport is BR BLAYDON approximately 13 km (8 miles) to the north. IDGE STRE ET BLAYDON HIGHWAY A695 L SUMME RHIL A695 SITUATION BLAYDON TRADE PARK The property is situated centrally in Blaydon town centre within 5 the core retailing and leisure pitch, directly adjacent to Blaydon A69 Railway Station. The property is accessed off the A695 which S forms the main arterial route west to . H IB D Blaydon Bus Stop is located directly south of the property O N R providing regular services around Blaydon and Gateshead. O A D The property forms part of the wider Blaydon Shopping Centre, A1 which forms the primary retail offering in Blaydon. In turn the BLAYDON ST THOMAS MORE INDUSTRIAL PARK SHIBDON property benefits from excellent football and passing trade. COMMUNITY C H BUSINESS PARK Immediate occupiers include; Costa, Boots, B&M, Lloyds Bank, SPORTS CENTRE K A I N N Specsavers, Iceland and a large Morrison supermarket. A B B R N ID D O G AY E L R B O

A E SHIBDON D AN L DENE CK BA

BLACK L A N E T E NK RE A ST B H ON RT D O IB N SH McDONALD’S BLAYDON SHOPPING CENTRE DRIVE-THRU INVESTMENT LET TO WESLEY COURT, THE PRECINCT, BLAYDON-ON-TYNE NE21 5BT MCDONALDS FOR 23 YEARS (CERTAIN)

4 The Precinct, Wesley Court, Blaydon-on-Tyne, NE21 5BT

DESCRIPTION TENANCY The property comprises a modern, purpose built drive-thru The property is let to McDonald’s Restaurants Limited on a 25 unit totalling 3,128 sq ft (290.6 sq m) arranged over a year FRI lease from 29/09/1998. McDonald’s have recently signed single-storey. The detached unit sits on a 0.28 acre site a reversionary lease extending the term to 28th September 2043, providing a designated drive-thru facility and the right to providing an unexpired term of 23 years. The property is sub-let to use a total 40 car parking spaces (located within the area Granite Restaurants Ltd (McDonalds franchisee). hatched green on the plan). The property is let on two conterminous leases producing a low Internally the unit provides a fully fitted restaurant with total passing rent of £74,758.77 per annum. The first lease is on WC facilities, kitchen area, ancillary offices and storage. the property at passing rent of £69,562.50 per annum, reflecting In 2012 McDonald’s extended unit from 2,625 sq ft to 3,128 sq ft. £26.50 psf (based on an area of 2,625 sq ft). The second lease is for the drive-thru road at £5,196.27 per annum. The leases are subject to 5 yearly, upwards only rent reviews to the open market SITE rent. The next review is on 29/09/2023. The tenant will benefit from a total of 9 months rent free split between The property provides a total site area of 0.28 acres. 9 months half rent from 25/12/2020 with a further 9 months half rent from 29/09/2023. This will be topped-up by the Vendor. TENURE McDonalds contributes to a service charge for the wider Blaydon Shopping Centre. The current service charge allocation is £4,001.16 241 year, long leasehold interest at a peppercorn rent. per annum.

© Crown Copyright, ES 100004106. For identification purposes only. created on Plotted Scale - 1:1,250

Misrepresentation Act: 1. Allsop LLP on their own behalf and on behalf of the instructing party, whose agents Allsop are, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop nor any of their members nor any person in their employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. McDONALD’S BLAYDON SHOPPING CENTRE DRIVE-THRU INVESTMENT LET TO WESLEY COURT, THE PRECINCT, BLAYDON-ON-TYNE NE21 5BT MCDONALDS FOR 23 YEARS (CERTAIN)

COVENANT McDonald’s Restaurants is the world’s most recognised fast food operator in the UK with over 36,000 restaurants across the world. The company is also the world’s largest chain of quick service restaurants serving over 10 million customers daily. There are currently in excess of 1,300 McDonald’s restaurants in the UK employing over 38,000 people. McDonalds continues to expand its UK operations with 40 new restaurants opening 2019 and further 60 restaurant forecast to open before the close of 2020 forming part of an expansion plan worth in excess of £1billion. The latest reported financials for McDonalds Restaurants Limited (01002769):

2016 2017 2018 Turnover £1,574,237,00 £1,593,489,000 £1,514,374,000 Pre-Tax Profit £341,009,000 £341,009,000 £406,278,000 Total Net Worth £1,044,866,000 £1,332,438,000 £1,098,986,000

Experian Score: 97 (Very Low Risk) Dunn & Bradstreet: 5A1

MARKET ANALYSIS Investment and rental market data:

Date Address Tenant Rent (£p.a.) Rent Unexpired Price NIY (£p.s.f.) Term (years)

Available Subject Property McDonalds £74,758 £26.50* 23 £1,343,000 5.25%

Available McDonalds Portfolio McDonalds £645,830 £35.00 17 £7,100,000 3.50%

Jan-20 Hastings Road, Tunbridge Wells Burger King (franchise) £100,000 £20.10 24 £1,995,000 4.72%

Nov-19 Bath Road, Gloucester Costa Limited £80,000 £44.44 15 £1,500,000 5.25%

Jun-19 Dartford, London Starbucks £125,000 £55.14 16 £2,500,000 4.50%

Feb-19 Wyvern Retail Park , Derby KFC (franchise) £71,050 £22.74 7 £1,300,000 5.16%

*Rent £p.s.f. excludes the drive-thru road which is let on a separate lease. EPC PROPOSAL The property has an EPC rating of D(81). Offers sought in excess of £1,343,000 (One Million, Three Hundred VAT and Forty Three Thousand Pounds), which reflects an attractive The property has been elected for VAT and it is anticipated that the transaction will be treated as a TOGC. Net Initial Yield of 5.25%, assuming purchasers costs of 6.02% ANTI-MONEY-LAUNDERING A successful bidder will be required to provide information to satisfy the AML requirements when Head of Terms are agreed. For further information or to make arrangements for viewing please contact:

DATAROOM James Salmon Siobhan Badman For access to the Allsop dataroom please use the following link: 07720 400306 07884 814884 https://datarooms.allsop.co.uk/register/mcdonaldsblaydon [email protected] [email protected] allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 01.21